Effective for examination from BGCSE Commerce Assessment Syllabus for examination from 2018 Page 1 Draft 1 Changes to Syllabus effective from 2018 The major change in this Assessment Syllabus is the use of new accounting terminologies which are also applicable to commerce. Slight modifications have been introduced to the structure and or duration of components 02 and 03. Component 01 remains unchanged. BGCSE Commerce Assessment Syllabus for examination from 2018 Page 2 Draft 1 CONTENTS PAGE FOREWORD…………………..…………………………………………..…….…………….……………….4 1. INTRODUCTION………………………………………………………………..……………………5 2. SCHEME OF ASSESSMENT……………………………………………………….…………….. 6 3 2.1 THE COMPONENTS ……………………………………………………………………... 6 2.2 AVAILABILITY……………………………………………………….……….………….. 7 2.3 COMBINING THIS SYLLABUS WITH OTHER SYLLABUSES……………………...7 SYLLABUS AIMS AND ASSESSMENT OBJECTIVES…….…………………………………. 8 3.1 AIMS……………………………………………………………………………………….. 8 3.2 ASSESSMENT OBJECTIVES……….…………………………………..………………9 3.3 RELATIONSHIP BETWEEN ASSESSMENT OBJECTIVES AND COMPONENTS.………………………………………………………………………….. 10 4 CONTENT …………………………………………………………………………………………. 11 5 OTHER INFORMATION ……………………………………………………..……………………28 6 5.1 GRADING AND REPORTING …………………………………………………………. 28 5.2 GRADE DESCRIPTORS ……………………………………………………………….. 28 APPENDICES …………………………………………………………………………………….. 30 A: GLOSSARY OF TERMS ……………………….………………………….…………….. 30 B: TABLES, QUANTITATIVE SKILLS AND PRINCIPLES..……… ………………….. 35 C: INTERNATIONAL STANDARDS TERMINOLOGY ……………………………….... 36 BGCSE Commerce Assessment Syllabus for examination from 2018 Page 3 Draft 1 FOREWORD The Botswana Examinations Council is pleased to authorise the publication of the revised Assessment Syllabus for the Commerce senior secondary education programme. The assessment syllabus forms part of the Botswana General Certificate of Secondary Eduction (BGCSE) suite of syllabi available to candidates who have followed the senior secondary programme. The BGCSE is designed for a wide range of learner ability in line with the aspirations of the Revised National Policy on Education of 1994, and its standards are based on Cambridge GCSE and IGCSE. Our mission as Botswana Examinations Council is to provide “a credible and responsive assessment and examination system”. In the quest for responsivenesss, we advocate for regular reviews of our assessment syllabi to reflect the aims of the national curiculum and international best practice. In this regard, developments have taken place in the professional Accounting field and these have a direct bearing on the teaching and learning of Commerce as a business subject.This revised assessment syllabus therefore aligns the examination to changes in the practice as well as the teaching and learning of Commerce. As an organisation, BEC values customer feedback as a means towards continual improvement. Feeback collected from previous examination sessions has pointed to a need for slight modifications to the scheme of assessment to further improve the reliability and validity of the outcomes. Such modifications are reflected in this revised syllabus. Another important feature of this revised syllabus is the inclusion of other pieces of information which are considered valuable to the users, such as the type of candidature to whom the syllabus is available. The contents of the syllabus have also been reorganised to enhance readability and flow of ideas. This syllabus document is the outcome of a great deal of professional consultation and collaboration, and I wish to extend my thanks to all those who contributed towards its development. On behalf of the Botswana Examinations Council, I wish to record my appreciation for the part played by Cambridge as part of the Accreditation Agreement between them and the Council. _______________________ Acting Executive Secretary BGCSE Commerce Assessment Syllabus for examination from 2018 Page 4 Draft 1 1. Introduction As part of the Botswana General Certificate of Secondary Education, this revised Commerce Assessment Syllabus is designed to assess the outcome of instruction for candidates who have completed a course based on the Senior Secondary Commerce Teaching Syllabus. This syllabus aims to assess positive achievement at all levels of ability. Candidates will be assessed in ways that encourage them to show what they know, understand and can do, and which provide opportunities to articulate their insights, perceptions and responses. This revised Commerce Assessment Syllabus should be read in conjunction with the Senior Secondary Commerce Teaching Syllabus Progression The BGCSE is a general qualification that enables candidates to progress either directly to employment or to proceed to further qualifications. BGCSE Commerce Assessment Syllabus for examination from 2018 Page 5 Draft 1 2. Scheme of Assessment All candidates must take three papers; Paper 1, Paper 2 and Paper 3 which are described below. The questions will be based on the whole syllabus. 2.1 The components Paper 1 Multiple choice 1 hour 40 Marks This paper will consist of forty multiple choice items with four possible responses. The questions will be based on the whole syllabus and will test assessment objectives 1, 2, 3 and 4. There are 40 marks for this paper. Weighting: 20% of the total marks. Paper 2 Written 2 hours 30 minutes 100 Marks The paper will comprise of four stimulus response questions (containing numerical, textual and visual information) and structured-response questions based on topics from the whole of the syllabus. All questions are compulsory and may or may not have the same total marks. The paper will assess assessment objectives 1, 2, 3 and 4. There are 100 marks for this paper. Weighting: 45% of the total marks Paper 3 Written Case Study 1 hour 45 minutes 80 Marks This written component is designed to test the same knowledge, skills and attitudes of a coursework in a case study. Candidates are required to apply their knowledge of entrepreneurship to comment on commercial issues and to solve commercial problems in the context of a case study. The component is designed to test assessment objectives 1, 2, 3 and 4. There will be four questions with a number of sub-sections (containing numerical, textual and visual information) and structured-response questions. There are 80 marks for this paper. The marks may vary from question to question. Weighting: 35% of the total marks BGCSE Commerce Assessment Syllabus for examination from 2018 Page 6 Draft 1 2.2 Availability This syllabus is available to both school candidates and private candidates. 2.3 Combining this syllabus with other syllabuses Candidates may not combine this syllabus in an examination series with the following: 7100 Cambridge O’Level Commerce BGCSE Commerce Assessment Syllabus for examination from 2018 Page 7 Draft 1 3. Syllabus Aims and Assessment Objectives 3.1 Aims According to the Commerce Teaching Syllabus, Candidates following the syllabus should acquire and develop: 1. knowledge and understanding of the commercial environment and how changes in that environment affect commercial behaviour; 2. knowledge and understanding of the language,concepts and procedures, of everyday commercial transactions; 3. knowledge, skills, attitudes and ethics in practical decision making, problem solving and team work; 4. an awareness of the importance and application of Information Technology in commercial activities; 5. understanding of the characteristics, functions and purposes of commercial activities and institutions in both the public and the private sectors; 6. the ability to apply skills of numeracy, literacy, enquiry, interpretation and presentation of commercial information in solving day to day commercial problems and making decisions; 7. knowledge and understanding of the organisation, financing and operations of commercial institutions; 8. an awareness of the nature and significance of innovation and change within the context of commercial activities; 9. knowledge of the importance of commercial processes, entrepreneurial skills, positive work habits, values and attitudes necessary for the world of work; 10. the ability to assess personal achievement and skills in the pursuit of commercial career opportunities and or further education; 11. problem solving, critical thinking, communication and team work/interpersonal skills to help them to be productive and adaptive in a changing environment; 12. an appreciation of the need to protect and utilise the resources of the physical environment in a sustainable manner. BGCSE Commerce Assessment Syllabus for examination from 2018 Page 8 Draft 1 3.2 Assessment Objectives At the end of the teaching/learning of the senior secondary commerce programme, candidates should be able to: AO1. Knowledge and Understanding demonstrate facts, terms, concepts, conventions, principles and techniques in commerce; demonstrate appropriate commercial knowledge through numeracy, literacy, presentation and interpretation; demonstrate understanding of the key features and purposes of commercial activities demonstrate understanding of the main documents used in commerce AO2. Application apply commercial principles and ideas to given commercial situations using appropriate terminology; use relevant data and information in written, numeric and diagrammatic form; including simple calculations; apply knowledge and understanding of commercial problems and issues; AO3. Analysis select and order data which is relevant to commercial situation; identify and select the significant issues in a commercial situation present information in an appropriate commercial format; analyse written and numerical problems relating to a commercial situation; report on objectives, planning and carrying out research on a particular commercial situation; organize and present the results of the research appropriately. AO4. Evaluation present reasoned explanations, understand implications and communicate in an accurate and logical manner; interpret information in order to make judgments and conclusions relating to commercial situations; distinguish between evidence and opinion; make reasoned judgements and communicate them in an accurate and logical manner. BGCSE Commerce Assessment Syllabus for examination from 2018 Page 9 Draft 1 3.3 Relationship between Assessment Objectives and Components The table shows the raw marks and the weighting of each skill area by component as well as the total for each skill area in the overall assessment. Assessment Objectives Paper 1 Skill Paper 2 Skill Paper 3 Skill Total marks Weighting marks Weighting marks Weighting Weighting 16 ± 2 8% 44 ± 2 19.80% 18± 2 7.88% 35% AO2: Application 13 ± 2 6.5% 29 ± 2 13.05% 19 ± 2 8.31% 28% AO3: Analysis 8±2 4% 17 ± 2 7.65% 20 ± 2 8.75% 21% AO4: Evaluation 3±2 1.5% 10 ± 2 4.5% 23 ± 2 10.06% 16% Total Marks 40 20% 100 45% 35% 100% AO1: Knowledge and Understanding BGCSE Commerce Assessment Syllabus for examination from 2018 80 Page 10 Draft 1 4. CONTENT This section presents the content as prescribed in the Commerce Teaching Syllabus. MODULE 1: INTRODUCTION TO COMMERCE UNIT 1.1: NEEDS AND WANTS AND THEIR SATISFACTION General Objective Topic Students should be able Specific Objective Students should be able to: to: Production and the satisfaction of needs and wants. 1.1.1 understand the meaning of needs and wants 1.1.2 understand the importance of production in the satisfaction of needs and wants 1.1.3 understand the importance of specialisation Commerce 1.1.4 understand the importance of the branches of Commerce 1.1.1.1 explain needs and wants with examples 1.1.1.2 differentiate between needs and wants 1.1.2.1 explain the meaning of production 1.1.2.2 differentiate between direct and indirect production 1.1.2.3 explain how production helps to satisfy needs and wants 1.1.2.4 describe the chain of production with the help of a diagram 1.1.2.5 explain the stages of production 1.1.3.1 explain the meaning of specialisation and division of labour. 1.1.3.2 describe the relationship between specialisation and trade 1.1.3.3 identify the levels of specialisation with examples 1.1.3.4 discuss the advantages and disadvantages of specialisation 1.1.4.1 explain the meaning of Commerce 1.1.4.2 discuss the importance of the branches of Commerce 1.1.4.3 relate Commerce to production BGCSE Commerce Assessment Syllabus for examination from 2018 Page 11 Draft 1 MODULE 2: TRADE UNIT 2.1: HOME TRADE General Objective Topic Students should be able Specific Objective Students should be able to: to: Types of retailers 2.1.1 understand the features of smallscale and largescale retailers Trends (changes) in Retailing 2.1.2 demonstrate an understanding of current developments in retailing 2.1.1.1 discuss the functions of retailers 2.1.1.2 identify the types of small-scale and largescale retailers (hawkers, mobile shops, street traders, itinerant traders, market stall holders, independent retailers, supermarkets, multiple shops, variety chains, department stores, mail order businesses, co-operative retail societies, speciality shops) 2.1.1.3 discuss the factors leading to the decline of small retailers 2.1.1.4 account for the survival of the small-scale retailer 2.1.1.5 state the features of each type of largescale retailers (supermarket, hypermarket, multiple shops, variety chain store, department store, mail order business, co-operatives) 2.1.1.6 explain the advantages and disadvantages of each type of large-scale retailer 2.1.1.7 differentiate between the different types of retailers 2.1.2.1 identify the main changes that have taken place in the retail trade (branding, packaging, self-service, after-sales service, mail order, shopping malls vending machines, loss leaders, loyalty cards, bar coding etc.) 2.1.2.2 explain the characteristics of each of the new developments in retailing 2.1.2.3 explain the causes of the changes in the retail trade 2.1.2.4 explain the advantages and disadvantages of each of the new developments BGCSE Commerce Assessment Syllabus for examination from 2018 Page 12 Draft 1 Credit Trading 2.1.3 demonstrate an understanding of knowledge and understanding of the operations of the various types of credit trading Consumer Protection and Customer Relations 2.1.4 demonstrate understanding of how the consumer is protected in Botswana Customer Service 2.1.5 explain the importance of customer services offered by retailers Types of Wholesalers 2.1.6 demonstrate understanding of the importance of the wholesalers Marketing Boards in Botswana 2.1.7 understand the role of marketing boards in the distribution of agricultural products 2.1.3.1 name the main types of credit trading (hire purchase, deferred payments, simple credit, monthly account, budget account, lay-by) 2.1.3.2 describe how each type of credit trading works 2.1.3.3 compare hire purchase and deferred payments 2.1.3.4 state the advantages and disadvantages of each type of credit trading 2.1.3.5 explain the importance of banks and finance companies in hire purchase transactions 2.1.4.1 explain the need for consumer protection 2.1.4.2 state the rights of the consumer in relation to the market 2.1.4.3 explain the various ways by which the consumer can be protected (including help from Botswana Bureau of Standards & Ombudsman) 2.1.4.4 examine the purposes of forming consumer associations 2.1.5.1 identify customer needs which make them buy from a particular seller (information, assistance, care, refund or replacement) 2.1.5.2 discuss the features of good customer services that can be offered by the retailer (staff, premises, products, aftersales care, etc.) 2.1.5.3 explain the importance of good customer services 2.1.5.4 explain how retailers should handle customer’s complaints 2.1.6.1 identify the main types of wholesalers (general wholesaler, specialised wholesaler, cash and carry wholesaler, co-operative wholesale society, independent wholesaler) 2.1.6.2 discuss the functions performed by the wholesaler 2.1.6.3 describe the characteristics of each type of wholesaler 2.1.6.4 explain the factors leading to the elimination of the wholesalers 2.1.6.5 discuss the implications of the elimination of the wholesaler 2.1.6.6 explain the ways by which the wholesaler is surviving in the chain of distribution 2.1.7.1 explain the reasons for establishing marketing boards 2.1.7.2 state the functions of marketing boards 2.1.7.3 explain the operations of the Botswana Agricultural Marketing Board and Botswana Meat Commission 2.1.7.4 appraise the activities of marketing boards with reference to Botswana Agricultural Marketing Board and Botswana Meat Commission. BGCSE Commerce Assessment Syllabus for examination from 2018 Page 13 Draft 1 Computers in Trading 2.1.8 understand the importance of computers in trading 2.1.8.1 identify the different ways computers are used in trading 2.1.8.2 describe the importance of computers in trading 2.1.8.3 discuss the growth of e-commerce and online retailing 2.1.8.4 discuss the impact of e-commerce on retail stores, mobile-shopping (mshopping) and on commercial activity 2.1.8.5 discuss the importance of electronic commerce in retailing BGCSE Commerce Assessment Syllabus for examination from 2018 Page 14 Draft 1 UNIT 2.2: PURCHASING AND SELLING PROCEDURES General Objective Topic Simple Contract of Sale Purchasing Activities Specific Objective Students should be able to: 2.2.1 understand the importance of the simple sales contract 2.2.2 demonstrate understanding of the purchasing activities of a trader Students should be able to: 2.2.1.1 explain the meaning of a contract of sale 2.2.1.2 define the terms offer and acceptance in sales contract 2.2.1.3 explain the importance of conditions and warranties in a sales contract 2.2.1.4 differentiate between an actual sale and an agreement to sell 2.2.1.5 determine the points on which agreement must be reached (price, quality, delivery, condition of payment, quantity) 2.2.2.1 identify the sources of supply for a particular product 2.2.2.2 state the processes of choosing a supplier for a particular product (define the need, research the market, adapt the sources to the need, make inquiries to various suppliers, evaluate the responses from suppliers, place an order to a chosen supplier etc.) 2.2.2.3 analyse the factors to be considered in choosing a supplier 2.2.2.4 show the follow-up procedures after the receipt of the order 2.2.2.5 prepare the documents used in buying and selling; (enquiry, catalogue/quotation, order, invoice, advice note, delivery note, credit note, debit note, statement of account, receipt, etc.) BGCSE Commerce Assessment Syllabus for examination from 2018 Page 15 Draft 1 UNIT 2.3: INTERNATIONAL TRADE General Objective Topic Students should be able Specific Objective Students should be able to: to: The Pattern of Foreign Trade 2.3.1 demonstrate understanding of the pattern of Botswana’s foreign trade 2.3.1.1 differentiate between home trade and foreign trade 2.3.1.2 explain why Botswana takes part in international trade 2.3.1.3 state the advantages and disadvantages of foreign trade to Botswana 2.3.1.4 state the characteristics of Botswana’s foreign trade 2.3.1.5 define the terms “balance of trade” and “balance of payments” 2.3.1.6 classify the current account items into visible and invisible exports and imports 2.3.1.7 differentiate between current and capital accounts in the balance of payments 2.3.1.8 show how the balance of payments is calculated 2.3.1.9 explain the implications of a favourable or unfavourable balance of payments to Botswana 2.3.1.10 discuss how a country can deal with unfavourable balance of payment 2.3.1.11 explain the importance of the International Monetary Fund and the World Bank 2.3.1.12 discuss the problems faced by Botswana exporters and importers Procedures and Documents in Foreign Trade 2.3.2 demonstrate an understanding of the procedures in exporting and importing 2.3.2.1 list the middlemen engaged in foreign trade (merchants, brokers, factors, forwarding agents) 2.3.2.2 state the functions of each of the middlemen in foreign trade 2.3.2.3 identify the documents used in foreign trade (bill of lading, indent, certificate of insurance, certificate of origin, consular invoice, airway bill, shipping note etc.) 2.3.2.4 explain the functions of each document in relation to the export or import of merchandise 2.3.2.5 state the importance of each document Methods of Payment 2.3.3 understand the various ways the importer can pay for the imports 2.3.3.1 state the methods of payment by the importer (bill of exchange, direct payments, letter/documentary of credit, documentary bill, traveller’s cheque) 2.3.3.2 explain each method of foreign payment 2.3.3.3 state the advantages and disadvantages of each method 2.3.3.4 show how commercial banks help to facilitate foreign trade BGCSE Commerce Assessment Syllabus for examination from 2018 Page 16 Draft 1 Botswana 2.3.4 demonstrate an Government and understanding of the Foreign Trade various ways Botswana Government may 2.3.4.1 explain how the government can assist exporters and importers 2.3.4.2 explain the functions and importance of Botswana Export Credit Insurance, Exporters Association of Botswana and Botswana Export Development and Investment Authority (BEDIA) help importers and exporters Customs and 2.3.5 demonstrate an Excise Department understanding of the in Botswana role of the Department of Customs and Excise International Trade Agreements 2.3.6 understand the importance of international trade agreements 2.3.5.1 differentiate between customs and excise duties, ad valorem and specific duties 2.3.5.2 state the advantages and disadvantages of customs duties 2.3.5.3 identify dutiable and non-dutiable goods in Botswana 2.3.5.4 describe the functions of the Department of Customs and Excise 2.3.6.1 identify the major international organisations designed to reduce trade restrictions (General Agreement on Trade and Tariffs, World Trade Organisation, United Nations Conference on Trade and Development) 2.3.6.2 describe the functions and organisation of Southern Africa Development Community and Southern Africa Customs Union as trading blocs BGCSE Commerce Assessment Syllabus for examination from 2018 Page 17 Draft 1 MODULE 3: BUSINESS ORGANISATION UNIT 3.1: BUSINESS UNITS General Objective Topic Students should be able Specific Objective Students should be able to: to: The Public Sector 3.1.1 show knowledge of the commercial activities of the government The Private Sector Businesses in Botswana 3.1.2 understand the importance of unincorporated business units in the economy of Botswana 3.1.1.1 identify the main business organisations in the public sector 3.1.1.2 explain why the government takes part in economic activities 3.1.1.3 explain the terms ‘nationalisation’, ‘privatization’ and commercialization’ 3.1.1.4 discuss the advantages and disadvantages of nationalization and privatization 3.1.1.5 explain the main features of a public corporation 3.1.2.1 differentiate between unincorporated and 3.1.2.2 3.1.2.3 3.1.2.4 3.1.2.5 3.1.3 demonstrate an understanding of the features of organisation of the limited liability company 3.1.3.1 3.1.3.2 3.1.3.3 3.1.3.4 3.1.3.5 3.1.3.6 3.1.3.7 3.1.3.8 3.1.4 acquire knowledge and understanding of the formation of a limited company 3.1.4.1 3.1.4.2 3.1.4.5 incorporated business units with examples compare the sole proprietorship and partnership on the basis of capital, control, ownership, liability, setting up etc. state the advantages and disadvantages of the sole proprietorship and partnership show the contribution of the sole proprietorship and partnership to Botswana’s economy differentiate between limited partnership and general partnership. explain the term “limited liability”; discuss the importance of limited liability to third parties and the company; state the features of public and private limited companies; differentiate between public and private companies; explain the terms “public” and “private”; show the importance of shareholders and board of directors in the control and management of a company; state the advantages and disadvantages of limited companies; compare the public corporation with the public company. state the functions of the Memorandum, Articles of Association and Prospectus; describe the part played by the Promoters and the Registrar of Companies in company formation ; explain the importance of the Certificate of Incorporation and Trading Licence. BGCSE Commerce Assessment Syllabus for examination from 2018 Page 18 Draft 1 3.1.5 demonstrate an understanding of the capital structure of a company Multinational Companies (MNCs) 3.1.6 understand the importance of Multinational Company The Stock Exchange 3.1.7 demonstrate an understanding of knowledge on the operation of the stock exchange 3.1.5.1 identify the types of shares; 3.1.5.2 explain each type of share; 3.1.5.3 differentiate between ordinary shares and preference shares; 3.1.5.4 explain the types of debenture capital; 3.1.5.5 compare shares and debentures; 3.1.5.6 explain the issue of shares to finance the establishment and operations of a company; 3.1.6.1 define a Multinational Company (MNCs) with examples; 3.1.6.2 explain why many developing countries try to attract Multinational Companies; 3.1.6.3 state the advantages and disadvantages of a company becoming a Multinational 3.1.6.4 explain the consequences to the host country of Multinational Companies. 3.1.7.1 define what is meant by a stock exchange 3.1.7.2 explain the functions of a stock exchange 3.1.7.3 describe the activities of the stock exchange members 3.1.7.4 describe the structure of the Botswana Stock Exchange 3.1.7.5 discuss the role of the stock exchange 3.1.7.6 explain the causes and consequences of stock market turbulence BGCSE Commerce Assessment Syllabus for examination from 2018 Page 19 Draft 1 UNIT 3.2: HOW TO ESTABLISH A COMMERCIAL ACTIVITY General Objective Topic Specific Objective Students should be able to: Students should be able to: A feasible commercial idea 3.2.1 explain the processes involved in finding a commercial activity. Purchasing a business 3.2.2 demonstrate an understanding of obtaining an existing business 3.2.1.1 explain ways of finding commercial ideas (solving a problem, noting a gap in the market, raising customers’ standard of living) 3.2.1.2 describe techniques of finding commercial ideas (observation, creativity, modifying ideas, experience, consultation) 3.2.1.3 list the most feasible commercial ideas 3.2.1.4 explain why some businesses fail. 3.2.2.1 explain the processes required in buying an existing business (advice, research, valuation of the net assets and goodwill, assessment of the financial statement of the business, etc.) 3.2.2.2 state the advantages and disadvantages of buying an existing business 3.2.2.3 explain the meaning of franchise 3.2.2.4 explain the advantages and disadvantages of a franchise Market research 3.2.3 explain the importance of market research for a new commercial activity 3.2.4 understand the processes of conducting a market research Business plan 3.2.5 understand the importance of planning to a new business Business capital 3.2.6 develop an understanding of the importance of capital to the business organisation 3.2.3.1 explain the term market and market research; 3.2.3.2 describe the main methods of market research; (primary/field, secondary/desk etc.) 3.2.3.3 state the information market research is likely to yield; 3.2.3.4 identify the market for the commercial idea or service. 3.2.4.1 prepare questionnaires for field research; 3.2.4.2 conduct market research using any method of primary research (questionnare/survey, interview, observation, experiment) 3.2.4.3 analyse the results of the market research; 3.2.4.4 write a report on the market research. 3.2.5.1 explain why businesses prepare plans; 3.2.5.2 describe the content of a business plan; 3.2.5.3 prepare a business plan (including cash flow, strengths, weaknesses, opportunities, threats analysis and profit forecasts); 3.2.5.4 interpret a business plan. 3.2.6.1 explain the start-up capital; 3.2.6.2 indicate the importance of the start-up capital to the business; 3.2.6.3 explain the importance of the working capital to the business; 3.2.6.4 explain the implications of a lack of working capital; 3.2.6.5 discuss how to improve the working BGCSE Commerce Assessment Syllabus for examination from 2018 Page 20 Draft 1 capital. 3.2.6.6 discuss the importance of self-financing, e.g. using retained profits, selling assets etc. Business Finance 3.2.7 understand the sources of long-term and shortterm finance Keeping the Books 3.2.8 demonstrate an understanding of the importance of keeping simple records of business transactions Simple financial 3.2.9 understand the importance of preparing simple financial statements statements 3.2.7.1 explain short-term and long-term finance; 3.2.7.2 discuss the sources of long-term (shares – ordinary and preference; debentures; sale and leaseback; long-term loans; grants; mortgage) and short-term (overdraft; trade credit; factoring; hire purchase; leasing) finance in Botswana; 3.2.7.3 explain the factors that will assist in the choice of a source of finance. 3.2.7.4 describe methods of self-financing (retained earnings, sale of assets, savings) 3.2.7.5 evaluate the suitability of choice of finance including (self-financing) in given situation 3.2.8.1 discuss the importance of record-keeping to a business; 3.2.8.2 identify income and expenditure items of a business; 3.2.8.3 record income and expenditure separately; 3.2.8.4 compare the total monthly income with the total monthly expenditure. 3.2.9.1 discuss the importance of preparing financial statements of a business; 3.2.9.2 explain income statement and the statement of financial position; 3.2.9.3 identify the items which appear in the income statement; 3.2.9.4 explain the cost of sales; 3.2.9.5 show how the cost of sales is calculated; 3.2.9.6 show the relationship between the items which appear in the income statement; 3.2.9.7 identify the items which appear in the statement of financial position; 3.2.9.8 describe the structure of the statement of financial position; 3.2.9.9 differentiate between non-current assets and current assets; 3.2.9.10 identify the main items of current assets and how their changes may affect the working capital; 3.2.9.11show the relationship between the items which appear in the statement of financial position. 3.2.9.12 explain and evaluate the methods of improving sales turnover, rate of inventory turnover, profit, and working capital: reducing expenses,increasing mark-up, changing prices, improving marketing, introducing new products in a given situation 3.2.9.13 calculate and interprete simple ratios. (profit margin, mark-up, liquidity ratios, rate of inventory turn) 3.2.9.14 identify, define and examine the BGCSE Commerce Assessment Syllabus for examination from 2018 Page 21 Draft 1 importance in commercial situations of fixed and working capital, assets and liabilities, sales turnover, rate of inventory turnover, gross profit and profit for the year) Social responsibility of the commercial organisation 3.2.10 explain the responsibilities of commercial organisations towards the community they serve 3.2.10.1 discuss various ways of protecting the environment; 3.2.10.2 describe the legislation available to protect the environment against commercial practices in Botswana; 3.2.10.3 describe the role of pressure groups (e.g. Kalahari Conservation, Wildlife Clubs, Green Peace, etc.) in protecting the environment against practices of commercial organisations 3.2.10.4 discuss the sustainable ways of utilizing the resources in the environment by commercial organisations. MODULE 4: AIDS TO TRADE UNIT 4.1: Topic FINANCE AND BANKING General Objective Specific Objective Students should be able to: Students should be able to: Methods of payments in Botswana 4.1.1 assess the various 4.1.1.1 identify the methods of payments in Central bank 4.1.2 understand the Commercial Banks importance of Central Bank; 4.1.3 develop understanding of the functions of Commercial Banks methods of payment in Botswana Botswana; 4.1.1.2 explain the development of cashless society 4.1.1.3 evaluate the use of cash in making payments in Botswana. 4.1.2.1 define the Central bank; 4.1.2.2 explain the functions of the Bank of Botswana. 4.1.3.1 explain the functions of commercial banks (safe keeping of money, making and receiving payments, lending, etc.); 4.1.3.2 describe the various types of accounts offered by the Commercial banks (deposit, savings, current); 4.1.3.3 explain the importance of savings to the individual and the country; 4.1.3.4 describe the various methods of making payments on behalf of customers (cheques, bank giro, standing orders, direct debit, remittances, debit card etc.) ; 4.1.3.5 evaluate the various methods of making payments; 4.1.3.6 describe the uses of electronic banking (online banking, Automatic Teller Machines (ATMs) 4.1.3.7 differentiate between a bank loan and overdraft; BGCSE Commerce Assessment Syllabus for examination from 2018 Page 22 Draft 1 4.1.3.8 complete a loan application form; 4.1.3.9 state the factors considered by the bank Other financial institutions 4.1.4 explain the The Cheque System 4.1.5 understand the The Clearing System 4.1.6 explain the process importance of other financial institutions operation of the cheque system of clearing cheques in Botswana before granting a loan; 4.1.3.10 discuss the use of computers in banking. e.g. new trends in banking, internet/online banking and mobile banking via smartphones. 4.1.4.1 identify other financial institutions in Botswana (savings bank, building society, finance companies, merchant banks, development banks, etc.); 4.1.4.2 state the functions of each of these financial institutions. 4.1.5.1 differentiate between open and crossed; bearer and order cheques; 4.1.5.2 explain the implications of the various ways of crossing a cheque; 4.1.5.3 explain the endorsement of a cheque; 4.1.5.4 explain why a cheque may be dishonoured. 4.1.6.1 identify the three processes of clearing cheques (local clearing, head office clearing, inter-bank clearing) 4.1.6.2 describe the clearing of cheques at the local bank, between branches of the same bank and between different banks; 4.1.6.3 explain the importance of the bankers’ clearing house in the inter-bank cheque clearing system. UNIT 4.2: INSURANCE General Objective Topic Purposes of insurance Specific Objective Students should be able to: Students should be able to: 4.2.1 understand the 4.2.1.1 define insurance; 4.2.1.2 explain the nature and importance of business risks that can be insured insurance; 4.2.1.3 differentiate between insurable and noninsurable risks; 4.2.1.4 explain the importance of statistics and Principles of Insurance 4.2.2 demonstrate knowledge and understanding of the principles of insurance other information in calculating risks and premiums. 4.2.2.1 explain insurable interest, utmost good faith, indemnity (contribution, subrogation & average clause) and proximate cause; 4.2.2.2 identify various situations a person cannot insure a property for lack of insurable interest; 4.2.2.3 explain the importance of utmost good faith in completing the insurance proposal form and when dealing with a claim; 4.2.2.4 explain the consequences of over insurance and under insurance in relation to the principle of indemnity; BGCSE Commerce Assessment Syllabus for examination from 2018 Page 23 Draft 1 4.2.2.5 calculate the indemnity payable given a Types of risks 4.2.3 demonstrate knowledge and understanding of different types of general insurance 4.2.4 demonstrate knowledge and understanding of different types of life assurance Procedures for buying insurance and making claims 4.2.5 demonstrate knowledge and understanding of the procedures for buying insurance and making claims loss resulting from an insured risk. 4.2.3.1 list the main types of general insurance (fire, marine, aviation, accident); 4.2.3.2 describe the types of fire insurance (private and business properties); 4.2.3.3 describe the main types of accident or special casualty insurance (insurance of liability: employer’s liability, public liability, professional indemnity, insurance of property, cash in transit, consequential loss/business interruption, personal accident, insurance of interest, motor vehicle insurance). 4.2.4.1 differentiate between insurance and assurance; 4.2.4.2 describe the main types of life assurance (whole life, term, endowment, family income, mortgage security, educational, group life). 4.2.5.1 explain the functions of insurance agents, actuaries, assessors, brokers and underwriters 4.2.5.2 compare the work of agents and brokers 4.2.5.3 describe the functions of the main documents used in obtaining insurance (proposal form, cover note, policy) and in making claims (claim form, police report etc.) 4.2.5.4 explain the process of buying insurance 4.2.5.5 explain the process of making a claim UNIT 4.3: ADVERTISING General Objective Topic Students should be able Specific Objective Students should be able to: to: The importance of advertising 4.3.1 demonstrate Advertising media 4.3.2 develop knowledge and understanding of the importance of various types of advertising knowledge and undeerstanding of the various media of advertising 4.3.1.1 state the purpose of advertising 4.3.1.2 describe the main types of advertising (collective/generic, competitive, persuasive, informative) and of the methods of appeal (emotions, colour, cultural acceptance, ambition and hero worship, gender, image); 4.3.1.3 explain the advantages and disadvantages of advertising 4.3.2.1 state the main media of advertising 4.3.2.2 state the advantages and disadvantages of each of the advertising media 4.3.2.3 explain the factors which affect the choice of advertising medium 4.3.2.4 relate advertising to branding and prepackaging BGCSE Commerce Assessment Syllabus for examination from 2018 Page 24 Draft 1 Advertising Agencies 4.3.3 demonstrate understanding of the functions and organisation of advertising agencies 4.3.2.5 explain the factors to consider in designing an advertisement 4.3.2.6 design an advertisement 4.3.3.1 explain why a producer may rely on an advertising agency for advertising 4.3.3.2 describe the functions of the advertising agency 4.3.3.3 describe the Code of Advertising Practice UNIT 4.4: WAREHOUSING General Objective Topic Importance and Types of Warehousing Specific Objective Students should be able to: Students should be able to: 4.4.1 explain the importance of warehousing 4.4.2 demonstrate knowledge of different types warehousing 4.4.1.1 explain the meaning of warehousing 4.4.1.2 state the importance of warehousing 4.4.1.3 discuss the functions of a warehouse 4.4.2.1 list the types of warehouses (manufacturer’s warehouse, cash and carry, warehouse for large-scale retailers, silo, cold store, bonded werehouse); 4.4.2.2 explain the uses of each type of warehouse - including bonded warehouse and cold storage UNIT 4.5: COMMUNICATION General Objective Topic Communication in business Specific Objective Students should be able to: 4.5.1 demonstrate knowledge of different types of communication Students should be able to: 4.5.1.1 explain the meaning of communication 4.5.1.2 determine the benefit of fast and accurate transmission of information to a commercial activity; 4.5.1.3 discuss the postal and payment facilities provided by the post office 4.5.1.4 discuss the facilities provided by the telecommunication and other related institutions 4.5.1.5 describe the uses of telecommunication and computers in the transmission of information (e-mail, intranet, internet,social media, smartphones, tablet) 4.5.1.6 discuss the importance of electronic communication in commerce; 4.5.1.7 outline the factors that affect the choice of communication methods BGCSE Commerce Assessment Syllabus for examination from 2018 Page 25 Draft 1 UNIT 4.6: TRANSPORT General Objective Topic Transport Systems Students should be able to: Students should be able to: 4.6.1 explain the 4.6.1.1 explain the importance of transport to an importance of transport and the factors that influence the choice of a transport system Road Transport in Botswana 4.6.2 understand the nature of road transport system Rail Transport in Botswana 4.6.3 understand the Air Transport 4.6.4 demonstrate nature, importance and new trends in rail transport knowledge and understanding of the nature, importance and new developments in air transport Water Transport 4.6.5 develop knowledge and understanding of the nature of water transport and its benefit Pipelines Containerisation Specific Objective 4.6.6 develop knowledge and understanding of transport by pipelines 4.6.7 develop knowledge and understanding of containerisation economy 4.6.1.2 identify the transport systems used in home and foreign trade 4.6.1.3 explain the factors affecting the choice of transport 4.6.2.1 state the advantages and disadvantages of road transport 4.6.2.2 identify new developments in road transport (the development of logistics, the importance of freight forwarders, courier companies, toll roads) 4.6.2.3 discuss the importance of new trends in road transport 4.6.2.4 explain the effects of the changes in road transport on the economy of Botswana 4.6.3.1 list the advantages and disadvantages of rail transport 4.6.3.2 identify the new trends in rail transport 4.6.3.3 discuss the importance of new trends in rail transport 4.6.3.4 discuss the effects of new developments in rail transport on the economy 4.6.4.1 state the advantages and disadvantages of air transport 4.6.4.2 identify the new trends in air transport 4.6.4.3 discuss the importance of the new trends in air transport (growth of air freight, low cost airlines) 4.6.4.4 show the effects of new developments in air transport on commercial activities 4.6.5.1 identify the types of water transport 4.6.5.2 state the disadvantages and disadvantages of each type of water transport 4.6.6.1 describe the nature of pipelines 4.6.6.2 state the advantages and disadvantages of pipelines 4.6.7.1 explain containerisation in the transport of cargo 4.6.7.2 list the advantages and disadvantages of containerisation BGCSE Commerce Assessment Syllabus for examination from 2018 Page 26 Draft 1 4.6.7.3 discuss the uses of mechanised cargo Ports and airports 4.6.8 demonstrate knowledge and appreciate the importance of ports and airports handling 4.6.8.1 identify the types of ports and airports 4.6.8.2 outline the main functions of ports and airports (sea, air, dry ports) 4.6.8.3 identify the services offered at airports for both passengers and freight 4.6.8.4 discuss the advantages and disadvantages of the services offered at airports for both passengers and freight 4.6.8.5 discuss the importance of the Department of Civil Aviation BGCSE Commerce Assessment Syllabus for examination from 2018 Page 27 Draft 1 5. OTHER INFORMATION 5.1 GRADING AND REPORTING BGCSE results are reported on a scale of A* – G, A* being the highest and G the lowest. Ungraded (U) indicates that the candidate’s performance fell short of the standard required for grade G. Ungraded (U) will be reported on the statement of results but not on the certificate. The letters Q (result pending) and X (no result) may also appear on the statement of results. 5.2 GRADE DESCRIPTORS As a guide to what might be expected of a candidate, Grade Descriptors are given as follows. Grade A To achieve an A grade, a candidate has to demonstrate the following: An excellent ability to identify detailed facts, principles and techniques in relation to the content of the syllabus; A thorough ability to define and explain the main principles and themes of the syllabus; An excellent ability to classify, interpret and comment on information presented in various forms; An excellent ability to select, and use appropriate data in an orderly manner; A thorough ability to interpret and evaluate commercial information and draw reasoned conclusions and make excellent decisions. Grade C To achieve a C grade, a candidate has to demonstrate the following: A sound ability to identify facts, principles and techniques in relation to the content of the syllabus; A good ability to use and comment on information presented in a non-verbal manner; A sound ability to define the main principles and themes of the syllabus; A sound ability to select and use appropriate data; An ability to interpret and evaluate commercial information and draw reasoned conclusions. BGCSE Commerce Assessment Syllabus for examination from 2018 Page 28 Draft 1 Grade E To achieve an E Grade, a candidate has to demonstrate the following abilities: Some ability to identify specific facts, principles or techniques in relation to the content of the syllabus; Some familiarity with definitions of the central principles of the syllabus; Some ability to classify and present data in a simple way and some ability to select and organise relevant information from a set of data; Some ability to select and use appropriate data; A rudimentary ability to gather information relating to a particular topic, present it in an ordered manner and draw some basic conclusions. BGCSE Commerce Assessment Syllabus for examination from 2018 Page 29 Draft 1 6. Appendices Appendix A Glossary of Terms of cognitive domain A larger percentage of the marks are structured in such a way that candidates will recall what they have learnt; or what they are expected to know. The following words have been explained to help to understand the expected outcome from candidates if they are used as a command word for an examination question. Knowledge Recall or recognise information, for example recall a process, rules, definitions; quote law or procedure Words to be used under knowledge will include: arrange, define, describe, label, list, relate, reproduce, state. Understanding/Comprehension Understanding means re-state data in one's own words, interpret, extrapolate, and translate. Eg explain or interpret meaning from a given scenario or statement, suggest treatment, reaction or solution to a given problem, create examples or metaphors Words to be used under Understanding/Comprehension will include: explain, classify, summarise, illustrate, review, estimate, interpret, etc. Application Use or apply knowledge, put theory into practice, use knowledge in response to real circumstances. Words to be used under application will include: use, apply, solve, produce, implement, construct, prepare, conduct, etc. Analysis Interpret elements, organizational principles, structure, construction, internal relationships; quality, reliability. E.g. identify constituent parts and functions of a process or concept, or de-construct a methodology or process, making qualitative assessment of elements, relationships, values and effects; measure requirements or needs. Words to be used under analysis will include: analyse,select, break down, compare, measure, examine, relate, graph, diagram, plot, show, differentiate, classify and divide. BGCSE Commerce Assessment Syllabus for examination from 2018 Page 30 Draft 1 Evaluation Judge from available evidence the value, efficacy, viability; critical thinking of a commercial situation. judgement relating to external criteria. Provide recommendations and justifications. Words to be used under evaluation will include: review, justify, assess, present a case for, investigate, direct, argue. Command words used to write the questions for examination papers may include: Account for Explain the reasons for, giving an indication of all relevant circumstances. Analyse Study in depth, reconstruct in a more useful form. To take apart or break down the whole into its component parts and functions of a process or consider in detail the component parts or features of the whole. Identify and describe in detail the main parts or characteristics of something or de-construct a methodology or process, making qualitative assessment of elements, relationships, values and effects; measure requirements or needs. Assess Examine closely, with a view to measuring or ‘weighing up’ a particular situation. Weigh up several sides of an argument. Consider in a balanced way: strengths and weaknesses, points for and against. In conclusion, state your judgment clearly. Calculate Work out the value, by manipulating numbers. In general, working should be shown when two or more steps are involved. This is a general term that may be interpreted as measure, or determine. Classify To arrange or organize according to class or category Comment State clearly and in a moderate fashion your opinion on the material in question. Support your views with references to suitable evidence, examples or explanation as appropriate. Compare Look for qualities and characteristics which resemble each other. Identify similarities and/or points of differences. Contrast Stress the similarities and differences between the items in question, but do not ignore points of similarity. Criticise Express and justify balanced judgment about the merit or truth of the material in question. Give the results of your scrutiny, establishing both strengths and weaknesses. Be specific BGCSE Commerce Assessment Syllabus for examination from 2018 Page 31 Draft 1 Determine This often implies that the quantity concerned cannot be measured directly but is obtained by calculation or substituting measured or known values of other quantities into a standard formula. Define Give concise, clear and authoritative meanings. Do not give too many details, but be sure to state the limitations of the definition. Show how the thing that you are defining differs from things in other categories. It is intended literally, only a formal statement or equivalent paraphrases being required. Describe Give the main characteristics or features of the matter in question, or relate in sequence form. Discuss Examine and analyse carefully, giving reasons for and against and the advantages and disadvantages of the factors being considered. Be complete and give details. You must consider all sides of the issue and reach a balanced conclusion with your reasons. Give a critical account of points involved in a topic. A balanced argument, judge, state opinion Differentiate Show the distinctive features, attributes, or traits; sometimes in a very positive sense or perceive difference in or between the Distinguish Show how one thing differs from another by using certain characteristics, such as the income effect and how it differs between normal, inferior and Giffen goods. Do you agree with? Discuss both sides of the stated proposition and give your opinion, with reasons, on one side or the other, but consider both sides of the proposition. BGCSE Commerce Assessment Syllabus for examination from 2018 Page 32 Draft 1 Evaluate Carefully appraise the matter in hand, citing both advantages and limitations. Emphasizes the views of authorities as well as your personal opinion – to put value on something, to assess its worth or to analyse and assess the role or function of something. Explain Clarify, interpret and spell out the material you present. Give reasons for important features or developments and try to analyse causes or say how it works. To make sense of something: to provide reasons for something being or happening in a particular way or to give a causal account of something. Use an example Examine To study something closely or in depth to assess Find It may be interpreted as calculate, measure, or determine. How far You are expected to make your case or present your material in a logical sequence, while remaining aware of the possible need to introduce contradictory or counterbalancing evidence. You will need to give your opinion and assessment of the issue. Identify To find, locate or recognise, to establish, or to say what it is Illustrate Use specific examples, figures or diagrams to explain demonstrate or clarify a problem, situation or view. Be sure to include diagrams if they are specifically asked for. Interpret Use specific examples, figures or diagrams to explain demonstrate or clarify a problem, situation or view. Be sure to include diagrams if they are specifically asked for. Justify Make out a case, prove or give reasons for decisions, statements or conclusions, taking care to be convincing: to show that something is correct, appropriate and reasonable. List Write an itemized series of words, phrases or concise statements without explanation. BGCSE Commerce Assessment Syllabus for examination from 2018 Page 33 Draft 1 Outline Brief description with main points: provide a framework description of main points and subordinate points, omitting minor detail and stressing the arrangement or classification of the material. Prepare To make ready or suitable in advance for a particular purpose or for some use, event or an activity or to work out the details of or to put together, or make by combining various elements or parts; manufacture or compound: compose or construct. Relate Show how things are connected to each other, or how one causes another or is like another. Review Examine a subject critically, analysing and commenting on the: important points and stages of development. State/name Express in clear terms or present the main points or definition in brief clear sequence with little or no supporting argument. Suggest Used in two contexts either to imply that there is no unique answer or to imply that candidates are expected to apply their general knowledge to something not formally in the syllabus. Show To explain something to someone, by doing it or by giving instructions or example to make it possible for something to be seen; or to record or express a number or measurement to prove something; or make the truth or existence of something known; or to express ideas or feelings using actions or words to make someone understand something by directing their attention to it. What is meant by? It implies that a definition should be given together with some relevant comment on the significance or context of the term concerned, especially when two or more terms are included in the question. BGCSE Commerce Assessment Syllabus for examination from 2018 Page 34 Draft 1 APPENDIX B Tables, Graphs, Quantitative Skills and Conventions Tables The column of a table will be headed or titled and the appropriate unit needed would be added. E.g. Pounds, Pula, grams, etc. Negative money values will be in bracket eg. (P5000) or ($200). Graphs A graph is the diagrammatic presentation of data. It may have one or several curves plotted on it. Points on the curve would be clearly marked as a cross (X) or encircled dots (0). If a further curve is included, vertical crosses (+) may be used to mark the points. The independent variable will be plotted on the X-axis (horizontal axis) and the dependent variable plotted on the Y-axis (vertical axis). Quantitative Skills Candidates will be required to perform some quantitative operations, including calculations. They should be able to use scientific calculators. The mathematical requirements, which form part of this syllabus, are listed below. Add, subtract, multiply and divide number; use simply formulae; understand and use averages; read, interpret and draw simple references from tables and statements. Find percentages of quantities; construct and interprete; financial statements. Calculate with simple fractions, decimals, percentage or ratios; manipulate and solve simple equations; interpret and use tables and graph. Concepts and conventions The syllabus and question papers will conform to generally acceptable international concepts and conventions. BGCSE Commerce Assessment Syllabus for examination from 2018 Page 35 Draft 1 APPENDIX C International Standards – Terminology The list below is to help Centres become familiar with international accounting terminologies which Botswana Examinations Council (BEC) uses in the Commerce syllabus. Well-known standards, which are relevant to the level of study, will be included in question papers, mark schemes and associated documents. It is recommended that Centres use this terminology in their teaching and learning materials, however, candidates will not lose marks for using different terms. International usage Previous BEC/Botswana usage Statement of financial position (balance sheet) Bank (and other) loans Interest bearing loans and borrowing Balance sheet Loans repayable after 12 months Bank overdrafts and loans Interest bearing loans and borrowing Loans repayable within 12 months Capital or equity/shareholders’ equity Capital Cash (and cash equivalents) Bank and cash Cost of sales Cost of goods sold Current assets Current assets Current liabilities Current liabilities Creditors: amounts due within 12 months Finance costs Interest payable Finance income/investment revenues Interest receivable Financial statements Final accounts Gross profit Gross profit Income statement Trading and profit & loss account Intangible assets Goodwill, etc. Inventory/inventories (of raw materials and finished goods) Stock Investment property Investments Non-current assets Fixed assets Non-current liabilities Long-term liabilities Creditors: amounts falling due after more than one year Other operating expenses Sundry expenses (administration and distribution) Other operating income Sundry income Other payables BGCSE Commerce Assessment Syllabus for examination from 2018 Page 36 Draft 1 Accruals Other receivables Prepayments Plant and equipment Plant and equipment Profit (before tax) for the year Net Profit Property Land and buildings Raw materials Ordinary goods purchased Purchases Revenue Sales Share capital Share capital Trade payables Creditors Trade receivables Debtors Work in progress Work in progress BGCSE Commerce Assessment Syllabus for examination from 2018 Page 37 Draft 1